PARAGAS v.

HEIRS OF DOMINADOR BALACANO

FACTS:

Gregorio Balacano, married to Lorenza Sumigcay, was the registered owner of the disputed lots. Gregorio and
Lorenza had three children, namely: Domingo, Catalino and Alfredo. Petitioners were the grandchildren of
Gregorio. Prior to his death, Gregorio was admitted at the Veterans General Hospital. He was transferred in the
afternoon of July 19, 1996 to the Veterans Memorial Hospital in Quezon City where he was confined until his
death. In his deathbed, barely a week before he died, he allegedly signed a Deed of Absolute Sale over the lots
in favor of the Paragas Spouses, accompanied by Atty. De Guzman who proceeded to notarize the same,
alleging that it was a mere confirmation of a previous sale and that Gregorio had already paid a P 50,000.00
deposit. There was nothing to show that the contents of the deed were explained to Gregorio.

Paragas then sold a portion of the disputed lot to Catalino. The grandson of Gregorio, sought to annul the sale
and partition. There was no sufficient evidence to support any prior agreement or partial execution thereof.

Issue: W/N Balacano is capacitated to enter into a contract of sale.

Ruling:

A person is not rendered incompetent merely because of old age; however, when such age has
impaired the mental faculties as to prevent a person from protecting his rights, then he is
undeniably incapacitated. He is clearly at a disadvantage, and the courts must be vigilant for his
protection. In this case, Gregorio’s consent was clearly absent – hence the sale was null and
void. The dubious circumstances raise serious doubts on his capacity to render consent.

It is not disputed that when Gregorio signed the deed of sale, Gregorio was seriously ill, as he in fact died a
week after the deed’s signing. Gregorio died of complications caused by cirrhosis of the liver. Gregorio’s death
was neither sudden nor immediate; He fought at least a month-long battle against the disease until he
succumbed to death on July 22, 1996. Given that Gregorio purportedly executed a deed during the last stages
of his battle against his disease, we seriously doubt whether Gregorio could have read, or fully understood, the
contents of the documents he signed or of the consequences of his act. We note in this regard that Gregorio
was brought to the Veteran’s Hospital at Quezon City because his condition had worsened on or about the time
the deed was allegedly signed. This transfer and fact of death not long after speak volumes about Gregorio’s
condition at that time. We likewise see no conclusive evidence that the contents of the deed were sufficiently
explained to Gregorio before he affixed his signature.